Automotive Driver Assistance Systems Market in Europe - Latest Findings by Frost & Sullivan
Moving Into Top Gear: Driver Assistance Systems Propel Driving Experience To A New Level European vehicle owners can now look forward to a new phenomenon - stress-free driving. Central to exciting developments in intelligent transportation systems has been the rising assimilation of Driver Assistance Systems (DAS) into vehicles. This is transforming driving into an easier, safer and altogether more satisfying exercise. DAS technologies are already redefining the boundaries of the driving experience by monitoring the vehicle's external environment and providing invaluable real-time feedback to the driver. DAS technologies like ultrasonic park assist (UPA), adaptive cruise control (ACC), night vision (NV), lane management, adaptive front lighting, and head-up display (HUD) technologies are streamlining driving and parking functions while contributing to overall enhancement in comfort, convenience and safety. “For instance, NV systems reduce eyestrain and improve night driving capability while HUDs relay information to the driver without distracting their focus from the road. UPA facilitates back up manoeuvres and ACC adds a comfort element to highway driving. These DAS technologies render driving a pleasant experience and create a strong motivation for increased installation,” says Frost & Sullivan (http://transportation.frost.com) Research Analyst, Christian Mueller. The European DAS market is currently at an embryonic stage. At present, only the UPA technology segment is well established and consequently, dominates the total market. It is forecast to account for an overwhelming 99 percent of market revenues in 2002. However, other technology segments are anticipated to gain momentum. In particular, ACC is already making inroads into the market with growth likely to soar following the introduction of next-generation features, such as stop and go, in 2005. ACC is likely to be a key component of future intelligent transportation systems. While currently offered as a convenience option to customers, this technology is expected to also offer increased safety based on its potential to automatically adjust vehicle speed when there is an increased risk of a rear-end crash. Indeed, its deployment is expected to significantly advance the prospect of an automated highway system. Night vision (NV) and head-up display (HUD) technologies are expected to enter the European market only in 2006. Their emergence is expected to offer drivers enhanced awareness of their external environment while rendering the act of driving a safer and more agreeable one. By 2010, the total European market for driver assistance systems is estimated to be worth an impressive €1.4 billion. Of this, Frost & Sullivan estimates UPA technology’s revenue contribution to be 89 percent and ACC’s 10 percent, with NV and HUD technologies jointly accounting for just under 1.5 percent of total revenues. With road safety a priority for vehicle manufacturers, government bodies and consumers, the spotlight has shifted from occupant protection or passive safety to accident avoidance - a trend that DAS systems have neatly folded into. For instance, technologies such as ACC and NV actively avert perilous conditions by providing advance warning to the driver. “DAS technologies heighten safety by introducing an active part into the equation which looks at ways to prevent crashes or to give drivers more time to react in potentially dangerous situations. They thereby reduce the stress load on the driver while supporting greater road safety,” explains Mr Mueller. Vehicle manufacturers (VMs) such as BMW, DaimlerChrysler, Fiat Group, Ford Group (mainly Jaguar), Renault (mainly Nissan) and Volkswagen Group are already offering ACC on some of their models. UPA technology is being offered by companies such as GM's Saab, Daewoo, MG, Peugeot and Citroen. By recognizing driver assistance systems’ potential as a tool for product differentiation and pioneering their introduction into some of their models, these companies are expected to gain a competitive edge over other VMs. Indeed, DAS are regarded as critical to competitive positioning strategies, wherein ever-expanding deployment of intelligent technologies is likely to stimulate customer interest. Increased unit sales are likely to be bolstered by a projected decline in prices of DAS technologies and their penetration into medium and smaller vehicle segments. Already, UPA is extensively available and benefits from good take-up rates. NV and HUD systems are likely to be priced high initially and limited to installation in the luxury vehicle segment. At present, high prices of ACC are acting as a restraint to wider use. However, as new technologies emerge, next generation ACC systems are likely to become more competitively priced, setting the stage for their expanded application in the lower end vehicle segments. “The idea of utilising available radar-based ACC technology in the automobile is very new to manufacturers, and high initial development costs currently prevent rapid penetration of lower segments. However, the emergence of less expensive laser-based systems presently under development is expected to boost the market for ACC systems,” adds Mr Mueller. Similar technological advances will be critical to DAS maximising its full potential. For instance, advances in sensor technology will facilitate the development of stop and go functions and obstacle detection. More developed software will promote additional functionality and enhance performance standards. Identifying and exploiting the synergies between DAS and other intelligent transportation systems, advanced telematics services as well as x-by-wire technologies will create expanded market opportunities, while supporting uptake. As vehicle manufacturers, suppliers and consumers increasingly focus on enhancing the driving experience, DAS look set to surge to the forefront of future automotive development. Report Code: B090 Publication Date: November 2002 Price: €7,500 Background Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of high-tech markets for trends, market measurements and strategies. This ongoing research is utilised to complement a series of research publications to support industry participants with customised consulting needs. Interviews and free executive summaries are available to the press. 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